Germans are buying Berlin real estate as interest rates fall while rents rising

Germans are buying Berlin real estate as interest rates fall while rents rising

Germans buying real estate and flock to property as interest rates fall while rents rising

For decades Germany has been a nation of tenants and shrewd and sensible savers who rented instead of owning their own home or apartment. However recently, especially in larger urban centres and specifically Berlin, a growing number of Germans are buying their own apartments.

Since the early 1990’s, property prices in Berlin were significantly lower than  London, Amsterdam or Paris, but also lower in comparison to other large German cities – however today Berlin is no longer such a cheap place to live.

Reuters yesterday ran an excellent  story by Michael Nienaber in Berlin highlighting this fact when it wrote – “This shift to a more U.S. or British approach to property is being encouraged by the European Central Bank’s cheap money policies and rising rents, especially in German cities. A growing urban population and unexpectedly high immigration are pushing up a housing market where construction rates had been low for years.”

German Bank’s low lending policies, increasingly higher rents along with a growing urban population with high immigration are pushing up housing markets in Berlin where construction rates had been low for years. This is especially the case in the popular areas of Berlin Mitte, Berlin Prenzlauer Berg and Berlin Friedrichshain.

‘Building Boom’ good for German Economy

The article mentioned further that there is presently a ‘building boom’ in many German cities which is directly related to this idea of owning your own home or apartment.

This new-home building phenomenon is somewhat of an anomaly in Germany where traditional supply and demand have been in relative even balance. The Reuters article pointed out that this new construction is also assisting the German economy where export to major markets such as China have slowed considerably in the last year.

‘Berlin Real Estate is a ‘no-brainer’!

Many headlines have read like…….. “Berlin ‘No-Brainer’ for International Property buyers.”  Indeed we wrote a blog on this very topic  Read our blog article from earlier this year – “2016 – AN OPPORTUNE TIME TO INVEST IN BERLIN PROPERTY!”